Over the past several weeks, the Government of Canada continues to make announcements concerning the ongoing COVID-19 pandemic. On March 25, 2020, the Government unveiled the Canada Emergency Response Benefit (“CERB”). CERB will allow Canadians to access a taxable benefit of up to $2,000.00 per month for a period of four months. This taxable benefit will be available to Canadians between March 15 and October 3, 2020. The taxation of the benefit of $2,000.00 will result in a net amount of $1,800.00. In applying for this benefit, you should consider how this might affect your personal circumstances come tax season in 2021.
The Government is hopeful that money will be distributed within two-weeks of applying. This benefit will be paid once every four weeks.
The CERB replaces two previous announced benefits. The reasoning for combining two previous benefits is to streamline the benefit system for Canadians to off-set the financial impact of COVID-19.
Who is eligible?
The CERB applies to all Canadians who are sick, have lost their employment, or are required to take care of a dependent who is infected with COVID-19. Whereas self-employed people were ineligible for EI benefits, the CERB covers self-employed and employed individuals.
It is urged that individuals who are applying for benefits update their direct deposit information on their My CRA Account to receive the funds quicker. For those Canadians that are currently receiving EI, they should not apply for the CERB benefit. If their EI benefit finishes prior to October 3, 2020, and they remain unemployed, they can apply for the CERB benefit.
If you are concerned about your current situation or have questions about how to apply for the benefit, please contact the team at Spiteri & Ursulak LLP. We would be happy to assist you and answer any questions.
**This information is not intended as nor does it constitute tax or legal advice. The information contained herein has been obtained from sources believed to be reliable at the time obtained, but neither Spiteri & Ursulak LLP nor its employees, agents, or information suppliers can guarantee its accuracy or completeness after the date of April 2, 2020.
